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Capitalist Regulation and Rescaling of Public Transport Governance: a Case of Nigeria＊

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Capitalist Regulation and Rescaling of Public Transport Governance: a Case of Nigeria＊ Hitotsubashi Journal of Economics 54 (2013), pp.251-277. Ⓒ Hitotsubashi University CAPITALIST REGULATION AND RESCALING OF PUBLIC TRANSPORT GOVERNANCE: A CASE OF NIGERIA＊ ＊＊ FUJIO MIZUOKA Graduate School of Economics, Hitotsubashi University Kunitachi, Tokyo 186-8601, Japan [email protected] AND KOHEI SHIMONO [email protected] Accepted September 2013 Abstract Taking a multi-scalar approach to capitalism from the perspective of recent economic geography and regarding public transport as an element of capitalist regulation, this study compares the provincial and national spatial scales. Rescaling occurs when provinces assume responsibility for supplying transport services to achieve provincial-scale regulation. This process occurs when the province is better equipped than the state to provide the intensity and efficiency of governance needed to regulate services. Comparison of the National Railway of Nigeria, falling under the federal government and LAMATA falling under the province of Lagos, empirically ascertains rescaling in regulation and identifies ʻthe cycle of democratic governanceʼ. Keywords: rescaling, Nigeria, the Nigerian Railway Corporation, LAMATA, capitalist regulation JEL Classification Code: R420 I. Theoretical Background 1. The Multi-Scalar Nature of Capitalist Regulation and Rescaling In conventional regulation theory, the state is the spatial unit of capitalist regulation. The ＊ This research was conducted with funding from the Governance and Management of Urban Transport (GAMUT), a global Centre of Excellence created by the Volvo Research and Educational Foundations (Sweden), headquartered at the University of Melbourne, Australia. ＊＊ Corresponding author 252 HITOTSUBASHI JOURNAL OF ECONOMICS [December state aims for the long-term stability of capitalism, mobilising the means of economic and social policy to encourage capital accumulation and social integration based on state power. Given that other spatial scales lack this power, the state is regarded as the most powerful and substantive spatial scale. However, the state is not the sole scale responsible for capitalist regulation. Such regulation takes place on the supra-national (e.g. EU) and the sub-national (e.g. local government) scales. Brenner (2004) argues that the urban scale has increasingly replaced that of the state in recent years, citing European cases in which the urban scale is transforming into a neoliberalist unit of competition. Under neoliberalism, the state tends towards ʻsmall governmentʼ and recedes from intervention in economic processes. The rescaling of regulation away from the state is, therefore, closely related to the weakening of politico-economic power on the national scale. In addition to neoliberalism, other factors can weaken the state scale. Dysfunctional social integration on the national scale prevents this scale from being used as a vehicle for regulation. In the past, various European imperialist powers superimposed colonial boundaries, completely ignoring the scale of the lived spaces that the native ethnic groups had spontaneously produced for centuries. When the colonies gained independence, the fragmented spatial mosaic of colonial territories remained transforming into national boundaries. In terms of social integration, however, the society maintained its deep-rooted heritage on the ethnic scale, thereby eroding power on the national scale. For this reason, almost all states in Sub-Saharan Africa have a poor sense of national identity. In this region, governance barely functions on the state scale, having become an arena for inter-ethnic rivalry and conflict, with repeated coups. Rescaling occurs in such dysfunctional states, where it is more effective to regulate on the provincial scale, especially with ethnically homogenous provinces. This study discusses such rescaling, particularly in relation to transport infrastructure. 2. Transport as a Moment of Regulation Capital accumulation and social integration form the two principal elements of capitalist regulation theory, which focuses on direct production processes, with labour as the crucial moment. Labour is not the sole factor stabilising social integration, however. In a separate work, Mizuoka (2012) argued that transport plays an indispensable role in capital accumulation and social integration. Transport connects supply with demand and production sites with homes. Neither capital accumulation nor social integration can proceed without transport. It forms an essential bridge between the agents of the market, on which capitalist accumulation is based. Transport is also necessary for social integration, as it provides conditions that allow workers to sell their labour power and perform their daily life activities. An inadequate supply of transport causes a crisis within the capitalist system by disrupting the flow of goods. Additionally, it leads to the collapse of social integration, driven by social upheavals resulting from commuting difficulties. Avoiding these outcomes requires a supply of fast, efficient and capacious transport services. Transport thus constitutes an important moment in capitalist regulation. If the state fails to provide sufficient transport services on the national scale, they must be supplied on a different scale to prevent the collapse of capital accumulation and social integration. 2013] CAPITALIST REGULATION AND RESCALING OF PUBLIC TRANSPORT GOVERNANCE 253 Transport-related regulation processes involve several distinct socio-political groups, each playing its own role. Therefore, it is essential to identify these stakeholders and their behavioural patterns. If stakeholders maximising profits or benefit from their organisations are satisfied and if good transport services are supplied simultaneously, the system will generate successful regulation, thus ensuring stable social integration and capital accumulation. 3. Nigeria, the Case Studied in This Article To demonstrate the above concept, we examine the case of Nigeria, a leading country in West Africa. Nigeria has a population of 163 million (as of 2011), with 176 people per km2. With a GDP of USD 244 billion, it is Africaʼs third largest economy. As of 2011,1 71.2% of the countryʼs exports came from crude oil, drilled around the mouth of the Niger River. Oil forms the basis of foreign exchange earnings and the abundant finances of the federal government. When the European imperialist powers subjugated Africa, Nigeria was established as a British colony in 1901 to counteract advances on the French colonial frontiers from the North and the West. Because of these power struggles, the colonial boundaries were drawn to include multiple ethnic groups: Muslims in the North, the Yoruba (who had traditionally been pagans but converted to Christianity under colonisation) in the South and the Igbo tribe in the East. From the first half of the 20th century until its independence in 1960, Nigeria was governed by the British colonial government. Under its rule, Nigeria became a supplier of raw materials and market for the suzerain, with ethnic conflicts held in check by Britainʼs colonial governance. Nigeria retained the same territory as that of colony upon independence. The new state immediately became a hotbed of inter-ethnic struggles. In addition to building up the national economy, the amelioration of ethnic conflict has always been an important objective for the Nigerian government. Since independence, Nigeria has never enjoyed a long-term, stable government. It has experienced many changes of government, starting with the first republic at the time of independence, followed by the first military rule, the second republic, the second military rule and proceeding to the current fourth republic. Even during periods of military rule, there have been frequent coups, and the current president, Goodluck Jonathan, is the 13th head of state. Suppressed under colonial rule, the interests of ethnic communities exploded onto the domestic political scene as various tribal grievances. The federal government tried to respond to the instability in national politics by expanding ethnic autonomy on the provincial scale, subdividing each state and increasing the number of states within the federation. Disputes arising from this subdivision contributed to the Biafra separatist movement, which shook the world with fears of starvation in 1967. Although the ʻBiafraʼ was crushed by the federal government, the subdivision of the states substantiated the political process on the provincial scale, further weakening federal politics on the national scale. Rather than representing the interests of the nation as a whole, politicians (including the president) represented the interests of their own ethnic communities. Countless politicians accepted bribes for personal gain. Despite these circumstances, some efforts were made to achieve unity on the national scale. The most prominent manifestation involved relocating the capital from Lagos to Abuja, 1 http://www.jetro.go.jp/world/africa/ng/stat_03/ (Accessed on 11 May 2013) 254 HITOTSUBASHI JOURNAL OF ECONOMICS [December FIG.1. NIGERIA WITH THE EXISTING NATIONAL RAIL NETWORK practically in the middle of the country. This was far from a fundamental solution to any of Nigeriaʼs problems. An anti-government movement continued deploying forces in and around Port Harcourt, the area that produces oil, the countryʼs main export and the backbone of the federal governmentʼs economy. A series of such post-independence movements further rescaled Nigeriaʼs capitalist regulatory
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